According to Xinhua News Agency, Guangdong Province issued RMB 7.5 billion in offshore RMB local government bonds in the Hong Kong Special Administrative Region on Oct. 17. This marks the second consecutive year that Guangdong has issued local government bonds in Hong Kong, with the bonds listed on the Hong Kong Exchange and Clearing.
The bonds consist of three tranches: 3-year, 5-year, and 10-year maturities. The 3-year bonds, designated as green sustainability bonds, raised RMB 3.5 billion with a coupon rate of 1.72%. The 5-year bonds raised RMB 2.5 billion at 1.80%, while the 10-year blue sustainability bonds raised RMB 1.5 billion at 2.09%. The proceeds will primarily fund green and blue sustainability projects, as well as development initiatives in Guangzhou Nansha to deepen comprehensive Guangdong-Hong Kong-Macao cooperation oriented towards global engagement.
The issuance adhered to international market practices and attracted investors from multiple countries and regions, including policy banks, commercial banks, funds, and asset management companies. Peak order book volume reached 20 billion yuan, with an oversubscription rate of 2.7 times, reflecting strong investor confidence in Guangdong's creditworthiness and development prospects.
The repeat bond issuance in Hong Kong will provide funding support for major infrastructure projects in the Guangdong-Hong Kong-Macao Greater Bay Area, further deepening regional cooperation and promoting high-quality development, while also strengthening financial collaboration between Guangdong and Hong Kong.
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